OIL PRICE SHOCKS AND GREEN BONDS: AN EMPIRICAL EVIDENCE
Date
2022
Authors
Azhgaliyeva, Dina
Kapsalyamova, Zhanna
Mishra, Ranjeeta
Journal Title
Journal ISSN
Volume Title
Publisher
Energy Economics
Abstract
This paper contributes to the existing literature by investigating the impacts of crude oil price shocks on financial
markets through an examination of the effect of oil price shocks on the issuance of corporate green bonds. Green
bond issuance has been growing fast over the past several years; despite this, the share of green bonds in the total
bonds remains less than 1%. Using the multilevel models, this study investigates the effect of flow oil-supply,
flow oil-demand, and speculative oil-demand shocks on (1) probability of the corporate green bond issuance
and (2) the share of corporate green bond issuance. We find that flow supply shocks, flow demand shocks and the
issuance of sovereign green bonds have a positive and significant effect on the probability of the issuance of
corporate green bonds, but shocks have no significant impact on the share of the corporate green bond issuance.
The results are robust to alternative specifications of our models.
Description
Keywords
Type of access: Open Access, Green bonds, Sovereign bonds, Green finance, Oil shock, Crude oil price
Citation
Koyanbayev, M., Wang, L., Wang, Y., & Hashmet, M. R. (2022). Advances in sour gas injection for enhanced oil recovery-an economical and environmental way for handling excessively produced H2S. Energy Reports, 8, 15296–15310. https://doi.org/10.1016/j.egyr.2022.11.121